Exhibit 99.1
CDT ANNOUNCES FISCAL FIRST QUARTER 2004
RESULTS
Company returns to profitability, generates positive cash flow.
Schaumburg, IL, December 8, 2003 – Cable Design Technologies (NYSE:CDT) reported today that earnings for the first fiscal quarter ending October 31, 2003 were $2.7 million, or $0.07 per diluted share. This compares with a net loss of $1.8 million, or $0.04 per diluted share, for the quarter ended July 31, 2003 and a net loss of $71.9 million, or $1.61 per diluted share, for the quarter ended October 31, 2002. The losses in the previous quarter and for the same period last year included expenses of $2.3 million and $4.7 million, net of tax, respectively, related to restructuring activities. In addition, the net loss for the same period last year included a $32.6 million loss, net of tax, from discontinued operations and a $35.7 million charge, net of tax, in connection with a change in accounting principle. The Company had a net loss from continuing operations of $1.7 million, or $0.04 per diluted share, for the quarter ending July 31, 2003 and a net loss from continuing operations of $3.6 million, or $0.08 per diluted share, for the quarter ending October 31, 2002.
Revenues for the first fiscal quarter ending October 31, 2003, were $130.6 million, compared with revenues of $129.5 million in the previous quarter and $121.0 million for the same period last year. Revenues for the first fiscal quarter 2004 benefited by approximately $6.0 million over the same period last year from the favorable effects of currency translation resulting from the weaker dollar. There was minimal impact from currency translation in the sequential quarter comparisons. Network Communication segment sales for the first fiscal quarter 2004 were $76.2 million and represented 58.3% of total company revenues, compared to $75.8 million in the previous quarter and $71.5 million for last year’s first quarter. Specialty Electronic segment sales for the first fiscal quarter 2004 were $54.5 million compared to $53.6 million last quarter and $49.6 million for the same period last year. First fiscal quarter 2004 segment revenues benefited from currency translation over the same period last year by approximately $3.3 million and approximately $2.7 million for the Network and Specialty segments, respectively. Sales outside of North America represented 38.7% of CDT’s current quarter revenues compared to 39.1% last quarter and 35.6% for the same period last year.
Selling, general and administrative expenses were $23.8 million for the current quarter compared to $24.7 million for the quarter ending July 31, 2003 and $23.5 million for the same period last year. The increase in SG&A over the same period last year is primarily due to the effect of foreign currency translation which increased SG&A by approximately $1.0 million. On a percent of sales basis, SG&A has declined to 18.2% from 19.4% a year ago.
The Company generated $5.1 million of cash during the quarter, driven largely by cash flow from operations.
Gross margin was 23.6% for the current quarter compared to 24.6% for the fiscal fourth quarter 2003 and 22.9% for the same period last year.
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“This quarter’s results in terms of profit, cashflow, and costs show the benefits of our restructuring efforts,” CEO Fred Kuznik stated. “With restructuring taking hold, we believe we have established a solid foundation for the business. The improving economy has resulted in increased revenues, and we continue to look to grow revenue through product and market development.”
About CDT
Cable Design Technologies (www.cdtc.com) is a leading designer and manufacturer of high bandwidth network connectivity products used in computer interconnect, switching and wireless applications and electronic data and signal transmission products that are used in automation and process control and specialty applications.
Safe Harbor Provision
Certain statements in this press release are forward-looking statements that are based on information currently available to management, management’s beliefs and a number of assumptions concerning future events. These statements include future financial results and performance, capital expenditures, length of market downturn and timing of any turnaround. These forward looking statements are subject to various uncertainties and other factors, which could cause the actual results to differ materially from those currently expected, including the level of market demand for the Company’s products, competitive pressures, economic conditions in the U.S. and other countries where the Company operates, working capital needs, information technology spending, the ability to achieve reductions in costs, the ability to continue to integrate acquisitions, price fluctuations of raw materials and the potential unavailability thereof, foreign currency fluctuations, technological obsolescence, environmental matters, industry competition and other specific factors discussed in the Company’s Annual Report on Form 10-K for the year ended July 31, 2003 and other Securities and Exchange Commission filings by the Company. The Company does not intend to update this information to reflect developments or information obtained after the date hereof and disclaims any legal obligation to the contrary.
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Cable Design Technologies Corporation & Subsidiaries
Condensed Consolidated Statements of Operations – Unaudited
(In thousands, except share and per share data)
Three Months Ended October 31, | ||||||||
| 2003 | 2002 | |||||||
NET SALES | $ | 130,648 | $ | 121,041 | ||||
Cost of Sales | 99,758 | 93,348 | ||||||
GROSS PROFIT | 30,890 | 27,693 | ||||||
Selling, general and administrative expenses | 23,770 | 23,451 | ||||||
Research & development expenses | 1,105 | 1,049 | ||||||
Business restructuring expense, net | — | 7,072 | ||||||
INCOME (LOSS) FROM OPERATIONS | 6,015 | (3,879 | ) | |||||
Interest expense, net | 1,264 | 1,640 | ||||||
Other (income) expense, net | (128 | ) | 269 | |||||
Income (loss) before income taxes, minority interest and cumulative effect of accounting change | 4,879 | (5,788 | ) | |||||
Income tax provision (benefit) | 1,878 | (2,301 | ) | |||||
Minority interest expense, net | 254 | 88 | ||||||
Net income (loss) from continuing operations before cumulative effect of accounting change | 2,747 | (3,575 | ) | |||||
Loss from discontinued operations, net of tax | — | (636 | ) | |||||
Loss on sale of business, net of tax | — | (32,008 | ) | |||||
Net loss from discontinued operations | — | (32,644 | ) | |||||
Cumulative effect of change in accounting principle, net of Tax | — | (35,723 | ) | |||||
Net income (loss) | $ | 2,747 | $ | (71,942 | ) | |||
NET INCOME (LOSS) PER COMMON SHARE | ||||||||
Basic: | ||||||||
Continuing operations | $ | 0.07 | $ | (0.08 | ) | |||
Discontinued operations | — | (0.73 | ) | |||||
Cumulative effect of change in accounting principle | — | (0.80 | ) | |||||
| $ | 0.07 | $ | (1.61 | ) | ||||
Diluted: | ||||||||
Continuing operations | $ | 0.07 | $ | (0.08 | ) | |||
Discontinued operations | — | (0.73 | ) | |||||
Cumulative effect of change in accounting principle | — | (0.80 | ) | |||||
| $ | 0.07 | $ | (1.61 | ) | ||||
Basic weighted average common shares outstanding | 41,501,168 | 44,528,305 | ||||||
Diluted weighted average common shares outstanding | 53,824,700 | 44,528,305 | ||||||
Results for the three months ended October 31, 2002 have been adjusted to reflect the cumulative effect of accounting change related to the adoption of SFAS 142 that was retroactive to August 1, 2002.
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Cable Design Technologies Corporation & Subsidiaries
Condensed Consolidated Balance Sheets—Unaudited
(In thousands)
| October 31, | July 31, | |||||||
| 2003 | 2003 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 37,790 | $ | 32,701 | ||||
Accounts receivable, net | 80,485 | 79,121 | ||||||
Inventories | 116,218 | 111,589 | ||||||
Other current assets | 31,952 | 30,225 | ||||||
Assets held for sale | 6,769 | 6,648 | ||||||
Total current assets | 273,214 | 260,284 | ||||||
Property, plant and equipment, net | 207,949 | 204,738 | ||||||
Goodwill, net | 11,020 | 10,980 | ||||||
Intangible assets, net | 3,562 | 3,740 | ||||||
Other assets | 13,364 | 13,211 | ||||||
Total assets | $ | 509,109 | $ | 492,953 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Current maturities of long-term debt | $ | 1,956 | $ | 1,960 | ||||
Other current liabilities | 73,527 | 70,299 | ||||||
Liabilities held for sale | 965 | 892 | ||||||
Total current liabilities | 76,448 | 73,151 | ||||||
Long-term debt, excluding current maturities | 112,337 | 112,730 | ||||||
Other non-current liabilites | 24,142 | 24,168 | ||||||
Total liabilities | 212,927 | 210,049 | ||||||
Minority interest in subsidiaries | 7,532 | 7,027 | ||||||
Stockholders’ Equity | ||||||||
Common stock | 486 | 484 | ||||||
Paid in capital | 203,684 | 202,544 | ||||||
Deferred compensation | (701 | ) | (727 | ) | ||||
Retained earnings | 141,225 | 138,478 | ||||||
Treasury stock | (65,159 | ) | (65,188 | ) | ||||
Accumulated other comprehensive income | 9,115 | 286 | ||||||
Total stockholders’ equity | 288,650 | 275,877 | ||||||
Total liabilites and stockholders’ equity | $ | 509,109 | $ | 492,953 | ||||
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Cable Design Technologies Corporation & Subsidiaries
Segment Results of Operations – Unaudited
(In Thousands)
| Three months ended | |||||||||||
| October 31, 2003 | July 31, 2003 | October 31, 2002 | |||||||||
Net sales: | |||||||||||
Network Communication | $ | 76,165 | $ | 75,823 | $ | 71,485 | |||||
Specialty Electronic | 54,483 | 53,648 | 49,556 | ||||||||
Total net sales | $ | 130,648 | $ | 129,471 | $ | 121,041 | |||||
Segment operating profit (loss): | |||||||||||
Network Communication | $ | 761 | $ | 621 | $ | (654 | ) | ||||
Specialty Electronic | 5,254 | 5,349 | 3,847 | ||||||||
Total segment operating profit | 6,015 | 5,970 | 3,193 | ||||||||
Business restructuring expense, net | — | 3,965 | 7,072 | ||||||||
Interest expense, net | 1,264 | 1,218 | 1,640 | ||||||||
Other (income) expense, net | (128 | ) | 85 | 269 | |||||||
Income (loss) from continuing operations before income taxes, minority interest and cumulative effect of change in accounting principle | $ | 4,879 | $ | 702 | $ | (5,788 | ) | ||||
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